Zune Pricing Announced

Microsoft’s “iPod Killer”, the Zune, will retail for $249.99, while songs for the device will cost about $.99 each. At this price, it sounds like Microsoft could take a loss on each unit sold, similar to what it did with the XBox 360.

Microsoft said it needed to put a comparable price on Zune, even if it meant that the company will suffer a loss from the device’s sales this holiday season.